Citation

Mumey G. J. Risk Insur. 1970; 37(2): 185-190.

Copyright

(Copyright © 1970, American Risk and Insurance Association, Publisher John Wiley and Sons)

DOI

10.2307/251178

PMID

unavailable

Abstract

Auto liability compensation arrangements are viewed as a total system, consisting of insurance companies, courts, and lawyers. Inputs to the system are liability insurance premium payments, some court costs, and some lawyer's fees. Output is in the form of benefit settlements for car accident victims. The efficiency of the system is identified as a ratio of output value to input value. Possibilities of reforming auto insurance practice are discussed within this efficiency context. This discussion includes a proposal for "negative insurance" that would involve insurance company purchase of an individual's legal rights to accident compensation.